In the software development world engineers are classified into different levels based on their experience and technical abilities levels as well as the size of responsibility. These levels assist organizations with the modelling of career development, specification of job functions and provision of sound team coordination.
From junior developers who concentrate on skill building and deepening their knowledge to senior engineers and architects designing complex systems, different software engineer levels represent a transition towards technical growth and leadership.
This informative guide will take you through the different working positions of software engineer. However, before exploring the SDE levels, let’s comprehend: what software development engineering is…
What is a Software Development Engineer (SDE)?
Software development is a diverse field offering multiple opportunities and roles, SDE or “Software Development Engineer” is one of the key positions associated with the design, development, testing and maintenance of software applications as well as developing systems. They have a responsibility to write code and work with others to achieve the aim of building scalable, efficient and reliable software solutions.
SDEs across industries are responsible for using programming languages, frameworks and tools to create software that is able to meet the needs of the end user as well as the business needs of the business. With their experience, their role evolves, starting from entry-level coding tasks to designing complex architectures and leading projects.
Promotion Levels of Software Engineer
Here is a comprehensive breakdown of software engineer levels to help you understand roles, responsibilities, skills, experience and salary (CTC) for each level:
Level 1:Software Development Engineer 1 (SDE 1)
SDE 1 is an entry-level software engineer responsible for developing clean code under supervision and working on well defined tasks. Their roles and responsibilities include debugging, contributing to software feature development and testing. The main aim of SDE 1 is to liaise closely with their team members, follow software development standards by continually ensuring adherence to all coding standards and in addition, actively seek out the latest information on best practices in software development.
➪Skills:
Proficiency in one or more programming languages (for example Java, Python, C+ with a good overview of data structures, algorithms and object oriented programming skills. Equipped with the knowledge of version control systems such as e.g. Git and basic knowledge of databases, APIs and software testing.
➪ Work Experience: 0-2 years
➪Salary (CTC): Between $60,000 – $120,000 in the USA or ₹6 – ₹20 LPA in India.
Level 2:Software Development Engineer 2 (SDE 2)
The role of SDE 2 involves handling more complex projects, develops software solutions independently and optimizes system performance. They review and mentor some of the junior engineers’ codes and work with cross functional teams in order to improve the scalability, reliability and performance of the systems.
➪Skills:
Strong coding and debugging skills with experience gained in the design of scalable and high performance systems. Deep familiarity with system design, microservices architecture and cloud based technologies. With an ability to write efficient and reusable code together with experience in the practices of DevOps and CI/CD pipelines.
➪Work Experience: 2-5 years
➪Salary (CTC): $90,000 – $150,000 in the USA or ₹15 – ₹40 LPA in India.
Level 3:Software Development Engineer 3 (SDE 3)
SDE 3 is a senior level role which involves designing and architecting critical components of large scale systems. Their responsibilities are to drive technical decisions, optimize system performance and influence engineering best practices across teams. SDE 3s also perform primary responsibilities in project execution and mentor newly graduated mid-level engineers whilst participating in code reviews.
➪Skills:
Having experience with IoT cloud platforms including AWS Azure and GCP together with a solid understanding of security, scalability and reliability in software is ideal. Usually possess strong leadership and technical mentorship abilities.
➪Work Experience: 5-8 years
➪Salary (CTC): $130,000 – $180,000 in the USA or ₹30 – ₹60 LPA in India.
Level 4:Staff Software Development Engineer (Staff SDE)
A Staff SDE is a technical expert who designs complex systems, improves architecture and drives innovation. Their roles and responsibilities include collaborating with multiple teams, resolving system bottlenecks, ensuring high software quality, influencing engineering strategies and mentoring junior engineers.
➪Skills:
Extensive experience in system architecture and software design with proficiency in solving high scale technical challenges. Strong leadership and cross team collaboration skills, besides having an in-depth knowledge of cloud computing, AI/ML and security practices.
➪Work Experience: 8-12 years
➪Salary (CTC): $150,000 – $220,000 in the USA or ₹40 – ₹80 LPA in India.
Level 5:Lead Software Development Engineer (Lead SDE)
Lead SDEs are one of the more important software engineer position level for managers to ensure the efficient job of software engineers which involves the development and delivery of efficient software. They are responsible for technical roadmaps, product strategy and cross functional collaboration. Lead SDEs also mentor and guide developers to improve productivity and software quality.
➪Skills:
Essential skills for project management and leadership which include the capacity to lead teams through the process of architecting architectural choices. These Engineers also have first-hand experience in full stack development rounded up by broad experience in DevOps, automation and cloud infrastructure.
➪Work Experience: 10-15 years
➪Salary (CTC): $180,000 – $250,000 in the USA or ₹50 – ₹100 LPA in India.
Level 6:Director of Engineering
The Director of Engineering is responsible for numerous teams within engineering, working to ensure that software development closely follows the enterprise wide objectives. They drive innovation, implement best practices and manage engineering budgets together with a focus on hiring, talent retention and high level decision making.
➪Skills:
SDEs of this level are known for strong leadership, people management and strategic planning skills. Experience in scaling engineering teams and processes with a deep understanding of emerging technologies and industry trends. The director of Engineering level person is also responsible for business acumen and stakeholder management skills.
➪Work Experience: 12-18 years
➪Salary (CTC): $200,000 – $300,000 in the USA or ₹80 LPA – ₹2 Cr in India.
Level 7:Vice President of Engineering (VP of Engineering)
The role of the VP of Engineering is to create the technical direction and establishing the engineering culture within the business while ensuring the smooth engineering product delivery process. The role and responsibilities also involves close collaboration with executive leadership regularly to ensure that the technology used by the business is aligned primarily with their business goals. They manage engineering budgets, product innovation and team scaling.
➪Skills:
Strong leadership and long term technical vision with experience in managing large engineering teams across geographies. Focused on business and technical alignment for revenue growth. Excellent stakeholder and executive communication skills.
➪Work Experience: 15-20+ years
➪Salary (CTC): $250,000 – $400,000+ in the USA and ₹1 Cr – ₹3 Cr+ in India.
Level 8:Chief Technology Officer (CTO)
The Chief Technology Officer (CTO) is a technical executive who is responsible for setting technology strategy and culture of technical innovation this individual in addition to leading the engineering enterprise and IT functions drives large scale research and development activities and ultimately must ensure that the company remains at the forefront of innovation so that the firm remains competitive. CTOs’ responsibilities also include making business technology decisions and influencing product vision.
➪Skills:
Visionary leadership and deep technical expertise, strong business and financial acumen. Experience in driving innovation, R&D and digital transformation, excellent communication and decision making at the executive level.
➪Work Experience: 20+ years
➪Salary (CTC): $300,000 – $1M+ in the USA and ₹2 Cr – ₹10 Cr+ in India.
In conclusion, understanding the levels of software engineer (SDE levels) is of paramount importance both for individuals looking to improve their careers and for organizations who wish to effectively and structurally organize their software engineering teams. Each SDE level from entry level SDE 1 to CTO role (a director on a large scale organisation) represents a progression in technical skill, leadership and business impact of the engineer who takes on these roles.
This framework can be used by engineers to set clearly defined career goals, acquire the basic training and mentorship required of the roles and to strategically structure their career choice such that they make the most of opportunities presented by the roles.
FAQs
Q1. Is software development a good career?
Yes, software development is an extremely rewarding field, with a very high demand for recruiters and many excellent salary opportunities available. The development field also provides a lot of scope for continuous learning of new technologies within a variety of industries. It is also very flexible in terms of work time and conditional use of remote work to support work.
Q2. What are the common programming languages for SDEs?
Software Development Engineers (SDEs) commonly use:
Python
Java
JavaScript/TypeScript
C++
C#
Go (Golang)
Swift/Kotlin
Q3. What certifications are beneficial for SDEs?
The following certifications can prove extremely beneficial for SDFs
AWS Certified Developer – Associate
Google Professional Cloud Developer
Microsoft Certified: Azure Developer Associate
Certified Kubernetes Application Developer (CKAD)
Oracle Certified Java Programmer (OCJP)
Q4. What are the best software engineering books for beginners?
Clean Code by Robert C. Martin
The Pragmatic Programmer by Andrew Hunt & David Thomas
You Don’t Know JS (series) by Kyle Simpson
Design Patterns: Elements of Reusable Object Oriented Software by Erich Gamma et al.
Introduction to the Art of Programming Using Scala by Mark C. Lewis
Q5. What is the salary for a software engineer with 3 years of experience?
The expected salary for a software engineer with 3 years of experience can be between $90,000 – $140,000 per year.
